Issue - meetings

Matter for Decision

The report presented and recommended the budget strategy for the 2016/17 budget cycle and specific implications which were set out in the Mid-Year Financial Review document October 2015.

 

The report also recommended the approval of new capital items and changes to phasing and funding proposals of the Council’s Capital plan.

 

Decisions of Executive Councillor for Finance and Resources

 

     i.        Agreed the budget strategy process and timetable for the 2016/17 budget cycle as outlined in Section 1 and Appendix A of the MFR document.

    ii.        Agreed incorporation of the budget savings and pressures identified in Section 4 of the MFR document.  This provided an indication of the net savings requirements, by year for the next 5 years and revised General Fund revenue, funding and reserves projections which was shown in Section 5 of the MFR document.  

   iii.        Noted the changes to the Capital Plan as set out in Section 6 of the MFR document and agree the new proposals.

  iv.        Agreed changes to General Fund Reserve levels with the Prudent Minimum Balance being set at £5.13m and the target level at £6.16m as detailed in Section 7 of the MFR document.

 

Reason for the Decision

As set out in the Officer’s report.

 

Any Alternative Options Considered and Rejected

Not applicable.

 

Scrutiny Considerations

 

The Committee received a report from the Head of Finance and s151 Officer.

 

The Committee made the following comments in response to the report:

     i.        Commented on p248-9 of the Officers report, and asked about the assumptions on staff turnover and whether these should be flexed upwards.

    ii.        Queried the 2% assumption for inflation on p249 which had been retained, linked to the recurring £100,000 on p251.

   iii.        Queried whether the table in the appendix on p271 could be expanded to include what the status of the item was.  

 

In response to Members’ questions the Head of Finance and the s151 Officer said the following:

     i.        Referred to the employee turnover on p248, the assumption had been in existence for a while, it was a standard assumption which was used over the whole of the Council unless there were exceptional circumstances.  No one had suggested the assumption was not valid.

    ii.        Referring to the retained inflation rate of 2% on p249, this was the target that the Government and Bank of England were working to.  Current inflation levels were well below this target so there is an opportunity for the Council to make a saving was taken.  The saving reduced the base of the Council’s expenditure and gave a recurring saving of £100,000 which would be spread over supplies and services.

   iii.        Confirmed that the Projects under Development (PUD) list would in future include the status of items.  Where s106 items were mentioned these had been through Area or Scrutiny Committee meetings as appropriate.  

 

The Committee resolved by 6 votes to 0 to endorse the recommendation.

 

The Executive Councillor approved the recommendation.

 

Conflicts of Interest Declared by the Executive Councillor (and any Dispensations Granted):

 

Not applicable.